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North American Petroleum farms-in to Northcote Energy project

North American Petroleum (NAP) has farmed-in to a 30 per cent working interest in the producing 1,520 gross acre Zink Ranch Project in Oklahoma.

The group, which is focused on developing its interests in proven US onshore oil and gas formations, said the move was part of its plan to rapidly build net production and reserves through the acquisition and development of leases in liquids rich hydrocarbon plays.

The project, which is majority-owned by AIM-listed Northcote Energy, has "significant" scope to increase production in the near-term, with a "high-impact" development potential.

NAP's Managing Director Stefan Olivier said: "The addition of Zink Ranch to our growing onshore US portfolio is potentially transformational for NAP with multiple increases on the project's existing gross production of 28 barrels of oil equivalent per day (boepd) being targeted in the near term.

"Zink Ranch has been prioritised by the operator for rapid development in 2014, involving low cost workovers of existing bores and the drilling of at least two new wells.

"In line with our strategy, the higher associated revenues will be invested into further development activity on our 1,523 net acres as well as acquiring new projects that match our criteria, as we look to significantly build on the $21m value assigned to our proven reserves."

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